Container Corporation Q2 FY21 results first cut: Land License fee overhang continues - YES Securities

- Container Corporation (Concor) reported topline de-growth of 25% yoy (to Rs.13.2bn, adjusted for SEIS income of Rs 1.8bn) led by ~9% volume decline and -17% fall in realization.

- EXIM revenue has witnessed higher decline (down 30% yoy; contribution: 71%) as compared to the domestic revenue (down 5% yoy).

- CONCOR reported 885,673 TEUs in Q2 FY21 of which 744,788 TEUs were of EXIM and 140,885 TEUs were of Domestic. Overall volumes declined by 8.6% yoy/+21% qoq led by -10% yoy decline in EXIM and -2% yoy de-growth in Domestic. Sequentially EXIM and Domestic grew by 19% and 34% respectively.

- Adj Operating margin fell to 10% (down 1460 bps yoy). During the quarter, the company has provided ~Rs 1.13 bn (Rs 2.33 bn) towards Land License Fee (LLF) for all terminals on Railway Land. The Company has received a demand of Rs.12.76 bn from Ministry of Railways as the LLF for FY21 for 13 terminals of CONCOR. As per company's assessment, the above demand is not as per Railway's extant policy and has represented the matter to the Ministry of Railways.

- Adjusted PAT stood at Rs 581 mn down 89% yoy/flat QoQ. The Company announced dividend of Rs 3/sh.

- We currently have an ADD rating on the stock and would review our forecasts post the earnings call

Shares of CONTAINER CORPORATION OF INDIA LTD. was last trading in BSE at Rs.406.85 as compared to the previous close of Rs. 397.6. The total number of shares traded during the day was 43680 in over 1892 trades.

The stock hit an intraday high of Rs. 409 and intraday low of 398.2. The net turnover during the day was Rs. 17677427.

Source : Equity Bulls

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